Partnership Agreement Template for Indonesia

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Key Requirements PROMPT example:

Partnership Agreement

"I need a Partnership Agreement for a tech startup in Jakarta between two local partners and one Singapore-based investor, with specific provisions for intellectual property protection and technology development starting from March 2025."

Document background
The Partnership Agreement serves as a foundational document for businesses operating in Indonesia who wish to establish a formal partnership structure. This document is essential when two or more parties decide to combine their resources, expertise, or capital to conduct business together under Indonesian law. The agreement must comply with local regulations, including the Indonesian Civil Code and Commercial Code, while addressing specific requirements for different types of partnerships, whether between local entities, foreign investors, or a combination of both. It's particularly crucial for documenting capital contributions, profit-sharing arrangements, management responsibilities, and exit strategies. The Partnership Agreement should be customized based on the specific business context, partnership type, and sector-specific requirements, while ensuring all provisions align with Indonesian legal requirements and business practices.
Suggested Sections

1. Parties: Identifies and provides full details of all partners entering into the agreement

2. Background: States the context and intention of the parties to form a partnership

3. Definitions: Defines key terms used throughout the agreement

4. Partnership Formation: Details of partnership establishment, business nature, and commencement date

5. Capital Contributions: Specifies initial and ongoing capital contributions from each partner

6. Profit and Loss Sharing: Details how profits and losses will be distributed among partners

7. Management and Control: Outlines management structure, decision-making processes, and voting rights

8. Rights and Obligations: Lists the specific rights and duties of each partner

9. Business Operations: Describes day-to-day operations, business policies, and procedures

10. Banking and Financial Matters: Specifies banking arrangements, accounting practices, and financial management

11. Term and Termination: States partnership duration and conditions for termination

12. Dispute Resolution: Outlines process for resolving disagreements between partners

13. Governing Law: Confirms Indonesian law as governing law and relevant jurisdiction

14. General Provisions: Includes standard clauses like notices, amendments, and severability

Optional Sections

1. Non-Competition: Restricts partners from competing with the partnership - used when intellectual property or trade secrets are involved

2. Intellectual Property Rights: Addresses ownership and use of IP - included when partnership involves creation or use of intellectual property

3. Foreign Investment Provisions: Special provisions for foreign partners - required when partnership involves foreign investment

4. Insurance: Details required insurance coverage - important for high-risk businesses

5. Force Majeure: Addresses unforeseen circumstances - particularly relevant in volatile industries or regions

6. Environmental Compliance: Environmental obligations - necessary for partnerships in industries with environmental impact

7. Succession Planning: Procedures for partner retirement or death - important for long-term partnerships

Suggested Schedules

1. Schedule 1 - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions

2. Schedule 2 - Profit Sharing Mechanism: Detailed formulas and methods for calculating profit/loss distribution

3. Schedule 3 - Business Plan: Initial business plan and strategic objectives

4. Schedule 4 - Management Structure: Detailed organizational structure and management responsibilities

5. Schedule 5 - Asset Register: List of partnership assets and their ownership status

6. Appendix A - Partner Information: Detailed information about each partner, including contact details and representatives

7. Appendix B - Operating Procedures: Detailed operational procedures and policies

8. Appendix C - Required Licenses: List of required business licenses and permits under Indonesian law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Professional Services

Retail

Construction

Agriculture

Mining

Tourism and Hospitality

Food and Beverage

Education

Healthcare

Real Estate

Transportation and Logistics

Financial Services

Creative Industries

Relevant Teams

Legal

Corporate Affairs

Business Development

Finance

Operations

Compliance

Risk Management

Strategic Planning

Investment

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Operations Director

Partnership Manager

Investment Manager

Compliance Officer

Business Owner

Entrepreneur

Company Secretary

Risk Manager

Strategic Planning Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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